[ana.RJ.IRL]

Hi,
How are you today?
sorry for come back to this question.
I have a doubt about this question

in the first question they ask:

What is the six-month forward exchange rate predicted by interest rate parity?
€1·499 per $1
€1·520 per $1
€1·566 per $1
€1·588 per $1

I did wrong as I assumed that 2% interest is related to Dinar and 5% related to dollar.
I thought as my spot rate is dinar per dollar, my domestic interest rate should be in dinars. I know that I am wrong but I do not why.

[Author]

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